Dawei Special Economics Zone and the impacts on Vietnam. Vu Dang Duong SITV

Transcription

1 Dawei Special Economics Zone and the impacts on Vietnam Vu Dang Duong SITV

2 An industrial project that could change Myanmar New Burma port to become trade corridor.

3 GMS maps, before 2010

4 GMS maps, since 2010

5 Dawei: General data 250 km 2 project area Developed by Italian-Thai Development Plc. (ITD) Framework Agreement signed between ITD and Myanmar Port Authority on November 2 nd 2010 Targeted industries: steel, chemicals, fertilizer, oil refinery, also medium and light industries. 350km away from Bangkok First phase: $4 US billion to develop deep-sea port, roads and railways linking.

6 Dawei port Two basins, 22 wharves Channel s depth: -18m Natural shelter good for anchorage No obstructions for approach channel & port basins Servicing liquid cargo, agricultural products, general cargo, containers.. Optional 3 rd port basin

7 ITD s ambition With completion of the port upgrade, goods bound for Thailand, China, Vietnam and Laos will be able to cut an average of 10 days off transport Map s Source: BBC

8 Dawei: 2011 Update Dawei SEZ Law enacted by the Myanmar Government on 27 th Jan 2011 The Central Working Body established on 28 th the Myanmar Government. Japan Road show: mid Jun 2011 Vietnam visit: late Aug 2011 Finance Advisor: Siam Commercial Bank Legal Administrator: Baker & McKenzie Interested in the project: Apr 2011 by

9 Why Dawei attractive? Location Resource: Oil and Gas Connectivity Investment Promotion ASEAN Economic Community to be created in 2015 Single market; Fair competition; Production base

10 Dawei: Investment Promotion

11 ASEAN Community Source: ASEAN Secretariat, Master plan on ASEAN Connectivity, 2011

12 Dawei Bangkok corridor

13 Obstacles Low-developed country In the list of Least Developed Countries GDP per capita: 587 USD (IMF, 2009) Population below poverty line: 32.7 % (CIA World Fact Book, 2007). Unpredictable and arbitrary government (Prof. Sean Turnell, Macquarie University). The prospective highway goes through a major insurgency area.

14 Will Dawei be successful? Attract investment? Transportation hub of the region?

15 Port at Arab Peninsula Dubai: from 4.2 mil TEUs in 2002 to 11.1 mil TEUs in 2009, ranked 7 th in the Top 100. Jeddah and Salalah mark the volume at over 3 mil TEUs recent years. Operated since late 2000, now Beirut come to the Top 100 with annual throughtput reach nearly 1mil TEUs.

16 Dawei has the location, sound ambitions and the good investment. Dawei has a good start. Dawei is on the right track thus far.

17 Dawei and the impacts on EWEC EWEC (East-West Economic Corridor) was the first economic corridor in the GMS to get the full road connection. But thus far, the East West Corridor remains a transport corridor with little evidence of transformation into an economic corridor (ADB, 2008). And EWEC infrastructure is heavily wasted, Le Huu Thang, Vice Chairman, Quang Tri People s Committee.

18 Source : UNESCAP website

19 Da Nang Port Ambition: Become the hub for not only the central provinces, but also for the EWEC. Annual cargo throughtput increased by 10-12%; container 25%. But the transit volume is very limited, less than 3% annually.

20 Compare Transportation Cost and Time between Transportation Modes for Lao Exporters Route Vientiane - Singapore Via Da Nang Via Bangkok Mode of Transportation Total cost (USD) Other handling charges Length (km) Time (days ) Road Sea Road Via Lat Krabang Road Rail Road 1550 n/a Via Bangkok Road Sea 1215 n/a Source : National Transport Committee, MCTPC 2006

21 Dawei impacts: Expert s opinions The Dawei project will have the two following effects on Ewec. Dawei port will make a port at Mawlamyine redundant. Improved connections between Dawei and Bangkok will reduce the likelihood that Ewec will be a success. Edo Andriesse, Ph. D Lecturer in International Affairs International College Khon Kaen University Thailand

22

23 Future Investment at Da Nang Da Nang port Upgrade Tien Sa terminal (receive 50,000 DWT vessel) Build Son Tra terminal (receive 20,000 DWT vessel) Build Lien Chieu terminal (receive 80,000 DWT vessel) Logistics center (20ha, started compensation) Upgrade Da Nang 1A NR Lao Bao Upgrade Da Nang 14B-14D NR Nam Giang

24 but.. My Thuy port? Deep-water port 995ha; 3272m berth length Investment cost: at least 1 million USD Targeted to serve the Lao Bao EZ and Dong Nam Sea EZ, also cargo from EWEC(!). My Thuy port has been added to the Master Plan of Seaport, regarding to 7557/BGTVT-KHðT Document.

25 Conclusion There is crisis over EWEC in term of losing investment. But in crisis there is opportunities!

26 Thank you!